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Cree Delivers Exceptional Light Quality and Energy Savings to Walgreens

Walgreens Co. (NYSE: WAG) (Nasdaq: WAG), one of the nation’s leading retailers, selected energy-efficient LED lighting by Cree, Inc. (Nasdaq: CREE) for its Goodyear, Ariz. location, delivering superior illumination while lowering the total cost of ownership compared to fluorescent lighting alternatives. The 14,820 square-foot store now features Cree® LED troffers, linear luminaires and downlights, saving the retailer thousands in annual energy and maintenance costs.

“Cree’s products deliver among the best light levels in the industry matched with superior efficacy, which helps lower our total cost of ownership since less power is needed to illuminate all levels of our shelves over alternative light fixtures,” said Jamie Meyers, manager of sustainability for Walgreens. “We had been looking to add LED technology to our corporate sustainability program for a while, and with the successful Cree® lighting implementation at the Goodyear store, it’s clear that it’s time to roll this out on a larger level. We are planning to incorporate LED lighting into all of our new stores moving forward.”

Supporting Walgreens’ commitment to PURE (People Using Resources Efficiently), which focuses on environmental sustainability by managing energy consumption, the Cree LED lighting system allows Walgreens to reduce its energy usage and operating costs without compromising light quality. Cree CS18 and CS14 LED linear luminaires deliver strong vertical light levels throughout the sales floor, while Cree CR24 troffers, designed to last 100,000 hours, help Walgreens reduce energy consumption and maintenance needs in the pharmacy. More importantly, the Cree luminaires are backed by Cree’s 10-year industry-leading limited warranty, providing investment protection.

“Our innovative LED lighting delivers real value by supporting the bottom line. Retailers no longer need to look to outdated technologies for a comprehensive lighting solution,” said Steve Barlow, senior vice president of lighting sales, Cree. “LED technology is the perfect complement to corporate social responsibility programs for leading retailers like Walgreens that are exemplifying the benefits of high-quality illumination with significant energy savings.”

Lighting has been an integral part of Walgreens since its first store opened in 1901, which featured “new, bright lights to create a cheerful, warm ambiance,” a marked departure from the dimly-lit stores of competitors. Powered by Cree TrueWhite® Technology, Cree CS18 and CR24 architectural troffers deliver 90+ CRI, providing exceptional color rendering to showcase merchandise in their truest colors.

“With Cree, the colors of our merchandise pop to such an extent that customers can easily see items on the bottom shelves,” added Meyers. “There is a distinctively different feel when you walk into this store. Cree® LED lighting has a better quality to it. It’s crisper and cleaner. That’s valuable to us, particularly as a retailer trying to make our product look as appealing as possible.”

Please visit www.cree.com/lighting/walgreens to read the full case study and view images of the installation.

About Cree

Cree is leading the LED lighting revolution and making energy-wasting traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading innovator of lighting-class LEDs, LED lighting and semiconductor products for power and radio-frequency (RF) applications.

Cree's product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree® products are driving improvements in applications such as general illumination, electronic signs and signals, power supplies and solar inverters.

Please refer to www.cree.com/lighting for additional product and company information.

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including the risk that actual savings and lifetimes will vary from expectations; that Walgreens’s plans for additional stores to install LED lighting may change; the rapid development of new technology and competing products that may render Cree’s products obsolete; and other factors discussed in Cree’s filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 30, 2013, and subsequent filings.

Cree®, Cree TrueWhite®, and TrueWhite® are registered trademarks, and CR24, CS18, and CS14are trademarks of Cree, Inc.

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